Goldie said that the 5G cycle consists of several different parts. He believes that Nokia is ahead of its peers in software development, IoT deployment and wireless access.
Editor’s note: This article is from “Netease Technology”, edit: Liu Chun.
November 21, according to Reuters, local time on Wednesday, worried about Nokia’s 5G technology development behind peers Ericsson and Huawei, Nokia software business leader Bhaskar Gordi (Bhaskar Gorti) Defended for his company.
Goldi said in an interview with Reuters: “I don’t think we have a 5G problem.” He pointed out that the development of 5G technology is a marathon, and many people are concerned about the first ten minutes of the game.
Illustration: Bhaskar Gorti, Head of Nokia Software Business
Last month, Nokia lowered its earnings forecast for this year and next, as the company needed to increase its investment in the 5G sector – a news that caused its share price to fall by a third.
Nokia also suspended dividend payments on the grounds of saving cash and promised to accelerate the launch of a new generation of 5G chipsets.
This is in stark contrast to the situation in Sweden’s Ericsson. Just a week ago, Ericsson raised its market expectations for this year and its sales target for 2020.
Industry sources and analysts told Reuters that Nokia is chaotic because it waits for the 5G radio standard to come into effect at the end of last year, while competitors are expected to launch the 5G radio standard in the US and South Korea, speeding up product upgrades. pace.
Amit Hirchandani, an industry analyst at Citibank in London, said that in the coming months, Nokia must demonstrate significant progress in repairing and deploying 5G products to restore investors confidence.
Goldi said that the 5G cycle consists of several different parts. He believes that Nokia is ahead of its peers in software development, IoT deployment and wireless access.
He pointed out: “I personally think that in the field of software development, we have at least two to three years or more to lead the closest competitor — Ericsson.
Steering software area
In the third quarter of this year, operating profit of Nokia’s software business increased by 108% year-on-year to 156 million euros ($172.6 million), surpassing Nokia’s long-term profit from its main business network business. It is 128 million euros.
Goldi said that it is important to understand that 80% of mobile networks are actually composed of software. In the new 5G network, the process of network virtualization will only accelerate.
Virtualization means that mobile network hardware can be replaced by software that is being operated by cloud services—a key development that Nokia and its peers will keep up with, as virtualization is now entering the wireless access network. (RAN) technology. So far, most of the investment has been invested in this area.
Unlike Ericsson and Huawei, Nokia chose to participate in the development of open wireless access network technology, and promised to support multi-vendor interoperability so that its carrier customers will not be bound to a single vendor.
Goldi pointed out: “We believe that if there is anything different, then more things will run on the common platform, which will bring better economic benefits for everyone.” He also said that Nokia Commitment to the future also supports the development of open wireless access network technology.
The cover image is from pexels